OTP vs. Passwords: Which is More Secure for Online Login?

Accessing online platforms is an essential part of our daily lives. We are logging in all the time; from social media accounts to banking applications. And so online security is a top priority in both the business and personal world. In this context, the key question arises: OTP vs. passwords – which is more secure for online login?

Secure authentication is one of the most important decisions we have to make when protecting our online accounts. And while we have traditionally relied on passwords for this purpose, the constant rise of cyber-attacks and online fraud has radically changed this concept.
Therefore, in this blog, we will discuss the main advantages and disadvantages of OTP (One-Time Password). As well as the key differences between it and conventional passwords. And we’ll tell you about the benefits for businesses of implementing this effective identity verification solution to protect their online accounts.

What is One-Time Password technology?

The OTP (One-Time Password) technology. It has become an innovative and effective identity authentication solution to strengthen online security. But what is OTP technology?

OTP is an authentication method that provides a unique, temporary password that is only valid for one login session or for a certain period of time. In other words, with this technology it is no longer necessary to rely on a traditional password, which is usually vulnerable to forgetting or even theft.

As CePymeNews states, it is a challenge to create and remember secure passwords for multiple online accounts, and the reality is that many people resort to common passwords as a solution. In fact, 73% of online accounts are protected by duplicate passwords.

The OTP login method offers an additional layer of security. By ensuring that the password is one-time only, it makes it difficult to use fraudulently, as well as providing different access options.

Studies have shown that the implementation of multi-factor methods, such as OTP, has led to a 60% decrease in fraud attempts compared to traditional passwords. In a digital landscape marked by constant threats. The choice of OTP has become an effective method against online fraud.

OTP VS Passwords: How does OTP technology work?

First, we should note that OTPs are generated automatically and are valid only during a single login session. And it is a technology that although it has few steps, it is very effective in preventing fraud, saving time and operational costs.

Typically, these codes are produced automatically and at the moment the user tries to log in. You will have to enter a verification code that will have been given to you via email or telephone, each code is unique and is valid for a short period of time, usually a few minutes. When you log in, the system verifies the code you enter to allow access.

The verification code expires after use or after a short period of time. This increases security and decreases the risk of fraud and thus potential financial and reputational losses for companies, which are very common risks in the corporate world.

Verizon confirms, “Password-dumping malware attacks pose a serious threat. Because they copy and steal stored passwords. In fact, it has been reported that 40% of malware-related breaches are due to the action of password dumper malware”.

OTP VS Passwords: Key Differences

The choice between OTP (one-time password) and conventional online login passwords is crucial in defining your company’s cybersecurity. This is why we will look at the fundamental differences between these two authentication methods.

• -Traditional passwords are permanent and must be memorized. Whereas OTP passwords are unique and temporary for each session. This reduces the risk of exposure to malware and provides an additional layer of security for online access.
  – Traditional passwords are vulnerable to duplicity attacks. Whereas OTP passwords are a more secure option for protecting online business accounts.
  – Traditional passwords are always at risk of being stolen because they can be used to access the account at any time. However, OTP passwords, although they can be intercepted, cannot be used in the future due to their expiration. This improves security by limiting the scope of potential intruders.
  – Traditional passwords rely on users to remember them or store them securely, which can be a challenge. OTP passwords, on the other hand, require the management of additional devices or applications to generate codes. This in turn provides security and reduces the burden of remembering passwords.

One-Time Password: The most secure method of user authentication

By thoroughly analyzing the differences between OTP and conventional passwords. Ultimately, OTP is the most secure user authentication option. Its ability to provide unique and temporary codes not only prevents cyber fraud. It also optimizes time and reduces operational costs.

By implementing OTP technology, enterprises not only strengthen their defenses against potential threats. They also simplify the identity verification process. The effectiveness of this solution lies in its ability to adapt to an ever-changing digital environment where security and efficiency are imperative.

Ultimately, OTP emerges as the most secure and advanced user authentication method. Leading the way to more secure and efficient online access.

By choosing OTP, you are not only opting for security. But also for an authentication experience that goes beyond the limitations of traditional passwords, providing peace of mind and efficiency

Implement the easiest OTP solution to integrate

Discover Verifik’s innovative solution that will completely transform your login experience. Passwords are now a thing of the past, giving way to OTP, an agile and effective alternative to forgetfulness and fraud associated with password management and the threat of data breaches.
By integrating our OTP technology, you will experience significant savings in time and resources. It is the easiest OTP solution to implement in the market, in 4 simple steps you will be able to obtain an easy, secure, and reliable user authentication solution.

1. 1. Log in to the Verifik software, and set up a customized project. You can choose from a variety of login methods (SMS, Email, Whatsapp, and even facial biometrics). At Verifik, we adapt to the specific needs of your platform! You no longer have to deal with traditional password management and password recovery. Because with OTP, authentication becomes simpler and more secure for your users.
2. 2. Easily import a CSV file or an Endpoint with the information of your registered users. Or even link your users from some of our APIs available in Verifik.
3. 3. Implement our technology in your platform. And with this, your users will receive unique codes in their emails or phones. Giving them secure and uncomplicated access.
4. 4. And finally, you will be able to track your users’ logins in real time. Transparency and control become an integral part of your access management experience.
5. 
   Join Verifik and experience the perfect convergence of security and simplicity at every login!
   Learn more about our product at OTP Login. And if you want to integrate it into your company, contact Team Verifik.